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First Post
an hour ago
- Business
- First Post
India's crypto tax collections soar to Rs 437 cr, a 62% jump: Govt data
The Indian government collected ₹437.43 crore in income tax from cryptocurrencies and other virtual digital assets (VDAs) in FY2023-24, a 62.5% jump from the previous year. Officials are using data analytics tools and targeted campaigns like NUDGE to track unreported transactions and crack down on crypto tax evasion read more The Indian government has collected Rs 437.43 crores in income tax on cryptocurrencies and other virtual digital assets (VDAs) in the fiscal year 2023-2024, stated Pankaj Chaudhary, Minister of State in the Ministry of Finance, in a written statement to the Lok Sabha on July 21. In FY22-23, the income tax collected on cryptocurrency was approximately Rs 269.09 crores, up nearly 62.5 percent year on year as of FY24. However, the government does not have the most recent figures for FY24-25 because the tax filing deadline is still in effect. STORY CONTINUES BELOW THIS AD This is the first time the government has revealed the specifics of cryptocurrency taxes collected since they were imposed in 2022. The government had imposed a 30% tax on gains from VDAs and a 1% TDS (tax deducted at source) on all transactions worth Rs 10,000 or more. In answer to a query, Chaudhary stated, 'The Government is utilizing data analytics tools to trace and detect tax evasion from VDA related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer.' Chaudhary also stated that the Central Board of Direct Taxes has launched NUDGE (Non-Intrusive Use of Data to Guide and Enable) campaign to discover such anomalies for further action. He said, 'Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh.' STORY CONTINUES BELOW THIS AD Moneycontrol exclusively reported in April 2025 that several crypto investors were starting to get income tax notices from the IT Department for failing to pay taxes on peer-to-peer (P2P) trading conducted through foreign exchange. The government is also strengthening its staff through capacity-building measures that will provide officers with training programs, specialised seminars, Chintan Shivirs, and hands-on workshops to enable efficient compliance monitoring and investigation of VDA-related transactions. Chaudhary said, 'At local level, field offices conduct training sessions and webinars on digital forensics, Blockchain analysis, legal frameworks, and handling of digital evidence. The officers and officials are also imparted short term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empower them to identify and trace VDA related transactions from data captured during intrusive actions.'
Indian Express
a day ago
- Business
- Indian Express
Govt collected Rs 437 crore as income tax from crypto in FY24, up 63% from FY23
The government collected Rs 437.43 crore as income tax on gains from cryptocurrencies – or Virtual Digital Assets (VDA), as they are called legally – in 2023-24, up 63 per cent from the previous year, the Finance Ministry said on Monday. In a written response to a question in the Lok Sabha on the first day of the Monsoon Session of Parliament, Minister of State for Finance Pankaj Chaudhary said that the tax collected on income from VDAs in 2022-23 was Rs 269.09 crore. This rose to 437.43 crore in 2023-24. Data for 2024-25 is not available yet as the due date for filing income tax returns for the year has not passed, Chaudhary said. While India at present does not have any law regulating crypto, the government introduced a flat 30 per cent tax on profit generated through the sale of VDAs starting April 2022, with losses made on the sale of these assets not permitted to be set-off against any other income or be carried forward. Later, starting July 2022, a 1 per cent tax deducted at source (TDS) on cryptocurrency transactions came into effect. 'The Government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer,' Chaudhary further said. He added that while VDA transactions filed in income tax returns were not being matched in real-time with information filed by Virtual Asset Service Providers (VASPs), the TDS returns of these service providers and income tax returns filed by taxpayers were being analysed to identify any discrepancies in reporting of crypto transactions. 'Central Board of Direct Taxes has initiated NUDGE (Non-Intrusive use of Data to Guide and Enable) campaign to identify such discrepancies for further action. Under NUDGE campaign suitable communications, to review and update their income tax returns, were issued to all taxpayers who did not report VDA related transactions in their income tax returns, despite tax being deducted at source for such transactions by VASPs, where the quantum of such discrepancy was more than Rs 1 lakh,' Chaudhary said. The Indian Express had reported last month, quoting sources, that the income tax department is investigating tax evasion and laundering of unaccounted income by high-risk persons through investments in VDAs, with analysis of crypto transaction data showing 'significant violations' of income tax rules. In his response in the Lok Sabha on Monday, the Minister of State for Finance said the government had not made any estimate regarding the projected revenue loss due to under-reporting or misreporting of income from VDA or crypto transactions. The information from the finance ministry on the income tax collected from crypto comes a day after CoinDCX, one of India's leading cryptocurrency exchanges, disclosed that it had suffered a loss of around $44 million, roughly Rs 379 crore, due to a security breach. Meanwhile, another leading Indian crypto firm WazirX was hit by a cyberattack last year which saw hackers allegedly steal more than $230 million of users' holdings. According to a December 2024 paper by New Delhi-based tech policy think-tank Esya Centre, analysis of relevant transaction data from December 2023 to October 2024 showed that Indians traded more than Rs 2.63 lakh crore on offshore crypto platforms, which corresponds to Rs 2,634 crore in TDS owed by offshore platforms. According to the think-tank, the total TDS that has not been collected from offshore exchanges since July 2022 possibly exceeds Rs 6,000 crore. Over the next five years, the think-tank projected, total crypto trading by Indians on offshore platforms could lead to more than Rs 17,000 crore of uncollected TDS. Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More
NDTV
a day ago
- Business
- NDTV
Crypto Or Virtual Assets Not Regulated In India: Minister Pankaj Chaudhary
New Delhi: The question of the legality or illegality of specific crypto platforms does not arise as of date as crypto or virtual assets are not regulated in India, Minister of State for Finance Pankaj Chaudhary told Parliament on Monday. However, to ensure oversight from an anti-money laundering and countering the financing of terrorism (AML/CFT) perspective, the Financial Intelligence Unit (FIU-IND) registers Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA), he said in a written reply in the Lok Sabha. "At present, crypto / virtual assets are not regulated in India. Consequently, the question of the legality or illegality of specific crypto platforms does not arise as on date," he said. The registration requirement applies equally to domestic and offshore platforms that cater to users based in India, he said. FIU-IND therefore maintains a dynamic list of virtual asset service providers who are not registered with them, he said. Separately, he said, the Finance Act, 2022, introduced Section 194S in the Income-tax Act, 1961, mandating a 1 per cent Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs). This applies to all transactions, including those involving offshore entities, if the income is chargeable to tax in India, he said. Further, the Reserve Bank of India (RBI) has issued advisories warning users, holders, and traders of virtual currencies or crypto assets about the potential risks, including economic, financial, operational, legal, and security concerns, he said. These advisories have been sector-wide and have not commented on individual platforms, he said. Replying to another question, Chaudhary said the tax on income from transfer of Virtual Digital Assets (VDA), under section 115BBH of the Income Tax Act, 1961, was introduced from 2022-23. Amount of tax on income from VDA as per Income Tax Returns was Rs 269.09 crore in 2022-23 as compared to Rs 437.43 crore in 2023-24, he said. The government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions, he said. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer, he added. Several capacity-building initiatives are being undertaken by the government to equip officers for effective compliance monitoring and investigation of VDA-related transactions, he said. Training programs, specialized workshops, Chintan Shivirs and hands-on workshops are regularly conducted by various training institutes under the Income Tax Department, he said. At a local level, he said, field offices conduct training sessions and webinars on digital forensics, blockchain analysis, legal frameworks, and handling of digital evidence. The officers and officials are also imparted short-term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empowers them to identify and trace VDA-related transactions from data captured during intrusive actions, he added.
Time of India
a day ago
- Business
- Time of India
Crypto or virtual assets not regulated in India: MoS Finance
Academy Empower your mind, elevate your skills The question of the legality or illegality of specific crypto platforms does not arise as of date as crypto or virtual assets are not regulated in India, Minister of State for Finance Pankaj Chaudhary told Parliament on to ensure oversight from an anti-money laundering and countering the financing of terrorism (AML/CFT) perspective, the Financial Intelligence Unit (FIU-IND) registers Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA), he said in a written reply in the Lok Sabha."At present, crypto / virtual assets are not regulated in India. Consequently, the question of the legality or illegality of specific crypto platforms does not arise as on date," he registration requirement applies equally to domestic and offshore platforms that cater to users based in India, he therefore maintains a dynamic list of virtual asset service providers who are not registered with them, he he said, the Finance Act, 2022, introduced Section 194S in the Income-tax Act, 1961, mandating a 1 per cent Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs).This applies to all transactions, including those involving offshore entities, if the income is chargeable to tax in India, he the Reserve Bank of India (RBI) has issued advisories warning users, holders, and traders of virtual currencies or crypto assets about the potential risks, including economic, financial, operational, legal, and security concerns, he advisories have been sector-wide and have not commented on individual platforms, he to another question, Chaudhary said the tax on income from transfer of Virtual Digital Assets (VDA), under section 115BBH of the Income Tax Act , 1961, was introduced from of tax on income from VDA as per Income Tax Returns was Rs 269.09 crore in 2022-23 as compared to Rs 437.43 crore in 2023-24, he government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions, he analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer, he capacity-building initiatives are being undertaken by the government to equip officers for effective compliance monitoring and investigation of VDA-related transactions, he programs, specialized workshops, Chintan Shivirs and hands-on workshops are regularly conducted by various training institutes under the Income Tax Department, he a local level, he said, field offices conduct training sessions and webinars on digital forensics, blockchain analysis, legal frameworks, and handling of digital officers and officials are also imparted short-term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empowers them to identify and trace VDA-related transactions from data captured during intrusive actions, he added.
News18
a day ago
- Business
- News18
Crypto or virtual assets not regulated in India: MoS Finance
Agency: New Delhi, Jul 21 (PTI) The question of the legality or illegality of specific crypto platforms does not arise as of date as crypto or virtual assets are not regulated in India, Minister of State for Finance Pankaj Chaudhary told Parliament on Monday. However, to ensure oversight from an anti-money laundering and countering the financing of terrorism (AML/CFT) perspective, the Financial Intelligence Unit (FIU-IND) registers Virtual Asset Service Providers (VASPs) under the Prevention of Money Laundering Act (PMLA), he said in a written reply in the Lok Sabha. 'At present, crypto / virtual assets are not regulated in India. Consequently, the question of the legality or illegality of specific crypto platforms does not arise as on date," he said. The registration requirement applies equally to domestic and offshore platforms that cater to users based in India, he said. FIU-IND therefore maintains a dynamic list of virtual asset service providers who are not registered with them, he said. Separately, he said, the Finance Act, 2022, introduced Section 194S in the Income-tax Act, 1961, mandating a 1 per cent Tax Deducted at Source (TDS) on the transfer of Virtual Digital Assets (VDAs). This applies to all transactions, including those involving offshore entities, if the income is chargeable to tax in India, he said. Further, the Reserve Bank of India (RBI) has issued advisories warning users, holders, and traders of virtual currencies or crypto assets about the potential risks, including economic, financial, operational, legal, and security concerns, he said. These advisories have been sector-wide and have not commented on individual platforms, he said. Replying to another question, Chaudhary said the tax on income from transfer of Virtual Digital Assets (VDA), under section 115BBH of the Income Tax Act, 1961, was introduced from 2022-23. Amount of tax on income from VDA as per Income Tax Returns was Rs 269.09 crore in 2022-23 as compared to Rs 437.43 crore in 2023-24, he said. The government is utilising data analytics tools to trace and detect tax evasion from VDA related transactions, he said. The analysis includes the use of Non-Filer Monitoring System (NMS), Project Insight and internal databases of the Income Tax Department, to correlate available information on VDA transactions with the transactions disclosed in the return of income by the taxpayer, he added. Several capacity-building initiatives are being undertaken by the government to equip officers for effective compliance monitoring and investigation of VDA-related transactions, he said. Training programs, specialized workshops, Chintan Shivirs and hands-on workshops are regularly conducted by various training institutes under the Income Tax Department, he said. At a local level, he said, field offices conduct training sessions and webinars on digital forensics, blockchain analysis, legal frameworks, and handling of digital evidence. The officers and officials are also imparted short-term training on digital forensics, in partnership with National Forensic Science University (NFSU), Goa, which empowers them to identify and trace VDA-related transactions from data captured during intrusive actions, he added. PTI DP MR view comments First Published: July 21, 2025, 20:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
